Latin American Economy An Overview

Latin America

Topography and Climate

Population

GDP per capita World map showing countries above and below the world GDP (PPP) per capita, currently $10,700. above world GDP (PPP) per capita below world GDP (PPP) per capita

Human Development Index World map indicating the Human Development Index category by country:    Very High (Developed Country)    High (Developing country)    Medium (Developing country)    Low (Developing country)    Data unavailable

Economy size GDP ($billion) Annual growth rate (2005-09) GDP/c ($)   GDP ($billion) Annual growth rate (2005-09) GDP/c ($) Population (million) Imports Annual Import growth FDI Business Environment (ranking) Brazil 1574 3.61 8220 191.48 138.6 17.83 25.9 127 Mexico 874 1.20 8134 107.55 240.4 4.62 12.5 35 Venezuela 325 5.84 11383 28.61 42.9 23.79 -3.1 172 Argentina 310 6.73 7725 40.13 43.9 15.02 4.9 115 Colombia 232 4.36 5167 44.98 33.2 15.20 7.2 39 Chile 161 3.35 9516 16.98 45.9 14.11 12.7 43 Peru 126 6.78 4356 29.10 22.5 19.54 4.7 36 Ecuador 55 3.85 3935 14.12 15.9 15.58 0.3 130 Dominican Rep. 46 7.39 4816 9.70 13.7 10.71 1.1 91 Guatemala 37 3.73 2688 14.01 11.8 10.47 0.6 101 Uruguay 31 5.98 9420 8.4 20.21 124 Costa Rica 29 4.81 6345 11.6 8.92 1.3 125 Panama 24 8.15 7175 3.47 43.1 18.84 1.7 72 El Salvador 21 2.11 3623 5.82 7.4 3.94 0.4 86 Bolivia 17 4.65 1708 10.23 3.7 19.77 149 Honduras 14 4.15 1911 7.47 7.9 -10.49 0.5 131 Paraguay 3.12 2265 6.28 6.5 24.05 0.0 106 Nicaragua 6 2.54 1071 5.74 3.4 11.23 117

Question Why is it that a region rich in natural resources failed to match the development of other areas that were no more developed than Latin America in 1500? Country 1870 1913 1950 2000 Argentina 420 804 1,013 3,810 Brazil 101 169 309 2,720 Mexico 110 143 282 6,230 U.K. 668 1,025 1,439 28,320 U.S. 567 1,344 2,384 37,870 UNIT: $

Economic growth of Latin America Resource Boom ISP Econ Reform Debt Relief Subprime Crisis Debt Crisis Mexican Crisis European Crisis Brazilian Crisis Lost Decade Argentine Crisis

Growth of LA and Asian NICs

Growth of LA countries

Import Substitution Policy Consequences Low productivity growth Low interest rates and over capacity Decline of agriculture Fiscal deficit and inflation Dependency on imports of essential inputs Production of cars in LA: 1968 Annual production number of firms Highest Lowest Argentina 180,976 10 41,280 1,093 Brazil 279,564 9 154,972 949 Chile 18,042 6 - Peru 10,115 2,346 92

Inflation in Latin America

External Debt/GDP of LA

Income Distribution in LA Latin America and the Caribbean have the greatest disparities in income distribution in the world. Similar to African countries, whose per capita income levels are half those of Latin America.

Evolution of LA’s Gini Index